Private equity firms among Meitav DASH Investments Ltd’s (TLV:MTDS) largest stockholders and were hit after last week’s 10% price drop

Private equity firms among Meitav DASH Investments Ltd’s (TLV:MTDS) largest stockholders and were hit after last week’s 10% price drop

To get a sense of who is truly in control of Meitav DASH Investments Ltd (TLV:MTDS), it is important to understand the ownership structure of the business. We can see that private equity firms own the lion’s share in the company with 29% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, private equity firms endured the biggest losses as the stock fell by 10%.

Let’s delve deeper into each type of owner of Meitav DASH Investments, beginning with the chart below.

View our latest analysis for Meitav DASH Investments

ownership-breakdown
TASE:MTDS Ownership Breakdown August 19th 2022

What Does The Institutional Ownership Tell Us About Meitav DASH Investments?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Meitav DASH Investments does have institutional investors; and they hold a good portion of the company’s stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Meitav DASH Investments, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
TASE:MTDS Earnings and Revenue Growth August 19th 2022

We note that hedge funds don’t have a meaningful investment in Meitav DASH Investments. Looking at our data, we can see that the largest shareholder is BRM Group with 29% of shares outstanding. Maya Holdings (Ye’elim) Ltd. is the second largest shareholder owning 28% of common stock, and The Phoenix Excellence Pension & Provident Fund Ltd. holds about 5.7% of the company stock. In addition, we found that Ilan Raviv, the CEO has 1.5% of the shares allocated to their name.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Meitav DASH Investments

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own some shares in Meitav DASH Investments Ltd. In their own names, insiders own ₪57m worth of stock in the ₪1.1b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Meitav DASH Investments. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With a stake of 29%, private equity firms could influence the Meitav DASH Investments board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

Our data indicates that Private Companies hold 28%, of the company’s shares. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we’ve discovered 3 warning signs for Meitav DASH Investments (2 are a bit concerning!) that you should be aware of before investing here.

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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